Tuesday, March 17, 2015


The Malaysian Ministry of International Trade and Industry has made the following determination-

In exercise of the powers conferred by paragraph 25(4)(a) of the Countervailing and Anti-Dumping Duties Act 1993 [Act 504] and regulation 15 of the Countervailing and Anti-Dumping Duties Regulations 1994 [P.U.(A) 233/1994], the Government has made a final determination under subsection 25(1) of the Act that-
(a) a dumping margin exists with regard to the polyethylene terephthalate with the intrinsic viscosity of more than 0.70 deciliter/gram classified under the Harmonised System Code (H.S. Code) 3907.60 000 and ASEAN Harmonised Tariff Nomenclature (AHTN) 3907.60.20 00 originating or exported from the People's Republic of China, Republic of Indonesia and Republic of Korea into Malaysia ("subject merchandise"); and
(b) an injury is found to exist because the domestic industry in Malaysia producing the like product has suffered material injury by reason of the importation of the subject merchandise.
Reasons for affirmative final determination
2. The reasons for the affirmative final determination are as follows:
(a) the export price of the subject merchandise is less than its normal value;
(b) the domestic industry in Malaysia producing the like product has suffered material injury that can be reasonably linked to the importation of the subject merchandise; and
(c) the dumping margin is found to exist through the dumping activities by the producers or exporters from the People's Republic of China, Republic of Indonesia and Republic of Korea which are as follows:
 CountriesProducers/ExportersDumping Margin
(i)People's Republic of ChinaChina Resources Packaging Materials Co., Ltd.7.18%
  Far Eastern Industries (Shanghai) Ltd.1.20%
  Guangdong IVL PET Polymer Co., Ltd.14.91%
  Jiangsu Xingye Plastics Co., Ltd.4.26% 
  Jiangyin Xingyu New Materials Co., Ltd.-2.19%
 (ii)Republic of IndonesiaPT Indorama Polypet Indonesia7.21%
  PT Indo-Rama Synthetics Tbk2.87%
PT Indorama Ventures5.72%

 (iii)Republic of KoreaAll producers/exporters14.91%
Anti-dumping duties
3. The anti-dumping duties to be imposed shall be as specified in the Schedule.
Reason for imposition of anti-dumping duties
4. The reason for the imposition of anti-dumping duties under paragraph 3 is to prevent the injury to the domestic industry in Malaysia producing the like product.
Period of imposition of anti-dumping duties
5. The anti-dumping duties imposed under paragraph 3 shall apply for a period of five years from 14 March 2015 to 13 March 2020.

[Paragraph 3]
 CountriesProducers/ExportersRate o f Duties
(Percentage (%)
of the Cost,
Insurance and
Freight (CIF)
1.People's Republic of ChinaChina Resources Packaging Materials Co., Ltd.7.18%
  Far Eastern Industries (Shanghai) Ltd.Nil
  Guangdong IVL PET Polymer Co., Ltd.14.91%
  Jiangsu Xingye Plastics Co., Ltd.4.26%
  Jiangyin Xingyu New Materials Co., Ltd.Nil
2.Republic of IndonesiaPT Indorama Polypet Indonesia7.21%
  PT Indo-Rama Synthetics Tbk2.87%

PT Indorama Ventures5.72%

3.Republic of KoreaAll producers/exporters14.91%
Dated 10 March 2015
Source: Here

Monday, March 9, 2015

Abandon ship?

THE latest non-farm payrolls - 295,000 jobs were added in February, while the unemployment rate fell to 5.5% - will reassure investors about the health of the US economy, while simultaneously provoking concerns about the likely date of the first Federal Reserve rate increase.
But what about the global economy? There are four things that might give investors pause. The first is the direction of central bank policy. The Fed might be thinking of pushing up rates but many more central banks have been cutting; India and Poland were the latest to join the trend. That doesn't suggest confidence in a global recovery. The second is bond yields. Euro zone 10-year yields are now on a par with their Japanese equivalents at 0.38%; the US has the highest yields in the G7 at 2.2%. Of course, one can argue that these yields have been manipulated by central banks, although both the Fed and the Bank of England reduced or stopped QE a while ago. The third and fourth measures are commodity prices and the Baltic Dry index, a measure of shipping rates (see chart, which is on a log scale). Both dipped in 2008-2009 and recently but the Baltic Dry's decline is much more precipitous; it recently hit a 30-year low.
One would expect there to be some kind of link between the two. After all, commodities are exactly the kind of product - bulky, imperishable - that companies are going to send by ship. And these indices are, of course, driven by the balance of supply and demand. Commodity markets operate with a lag - it takes time to develop new oil fields and dig new mines - so the risk is that the price may have dropped by the time the extra supply comes on stream. Shipping operates with an extra lag since shipowners respond to higher commodity demand. New ship orders more than trebled between 2012 and 2013. But it may not be just supply that is to blame; the WTO has been cutting its forecasts for world trade growth.
The head of Maersk, the shipping group, recently talked of slower global trade growth, adding that
The economies in Europe are still very sluggish. Brazil, Russia and China: those three economies used to drive a lot of growth, and right now we are not really seeing that to the same extent. The only real bright spot is the US, and even the US is good but not great
One should be pretty cautious about overinterpreting the Baltic Dry's movements; its sheer volatility over the long term suggests it can hardly be an exact forecaster of the economy. In some respects, its fall may even be good news, as some commenters point out. However the index's slump hardly suggests a boom either. And another bellwether isKorean exports which fell 3.4% year on year in February (although seasonal factors played their part).
The big question is whether lower oil prices and interest rate cuts will eventually act to give the economy a second wind, or whether both developments are merely a symbol of incipient weakness. The equity markets clearly favour the benign interpretation, and indeed one can partly explain rate-cutting and low bond yields with respect to the effect of falling commodity prices on inflation. As always, we need more data; first quarter GDP numbers from the emerging markets (out next month) will be the next test.
Source: Economist

Tuesday, February 24, 2015

Hubline Bhd to exit from its core container shipping business

KUCHING: Hubline Bhd has decided to exit from its core container shipping business to stop years of losses and concentrate on the profitable break bulk cargo transportation.
The Sarawak-based company said the decision, which was made following a detailed deliberation and review of all relevant factors, was due to depressed freight rates and overcapacity of the industry.

Hubline’s fleet of container vessels ply between ports in Malaysia, Thailand, Vietnam, Hong Kong, Indonesia, Papua New Guinea and other countries. These vessels are expected to cease operations by September this year.
In the past four years, Hubline said the container shipping division had contributed an average of 79% to the group’s overall revenue but with losses, therefore forcing the board of directors to reassess the group’s financial and operational strategies.
“Continued participation in the container shipping market without immediate turnaround in the industry landscape would eventually harm our profitable operations of the break bulk division.
“The group’s break bulk division has the potentials to develop and grow without being challenged by the pressure of subsidizing the container shipping division,” it added in a filing with Bursa Malaysia.
Hubline said the container liner industry had long been suffering since the economic crisis and overcapacity in the market was still evident.
The global liner industry, according to the company, is struggling with the depressed freight rates to meet operating costs.
“The global trade patterns are fast changing which is challenging to our operating model. Consequently, competition for cargo is still very fierce and operators are struggling to stay profitable with the depressed freight rate environment.”
The company said the exit process from container shipping would involve withdrawal from various trade routes, termination of related service and operational contracts as well as the disposal of container shipping related assets.
“Subject to market conditions during the exit process and the company’s successful execution of its exit plans, the estimated one-off costs to the income statement are expected to be approximately RM350mil for financial year ended Sept 30, 2015.
“However, over the long term, as the group concentrates on its profitable break bulk division, the board anticipates a positive impact to the group’s earnings,” it added.
Hubline said upon exiting the container shipping operations, the company would become an “affected listed issuer” and therefore required to comply with guidelines under Practice Note 17 (PN17).
Meanwhile, Hubline obtained a restraining order under Section 176(10) of the Companies Act,1965 from the High Court here on Feb 18 to facilitate the restructuring of its shipping operations.
It said the order was also to enable the company to focus its efforts on formalising a proposed scheme of arrangement for creditors.
Hubline shares were heavily traded yesterday, falling to a low of 2.5sen from the previous close of 3.5sen.
Source: StarBiz